Blog Two

European Union and NAFTA have similar purpose which is to ensure future trades agreements promoting progress in living standards, environment and human right. European Union has definitely done better job in outlining the qualification for countries to meet certain standards socially and economically. Unlike the EU, in January 1994, NAFTA added Mexico to the free trade zone without outline plans benefiting living standards or environment and human right, however it stress only on the economic benefits between US, Canada and Mexico.

In free trade, there are always going to be winner and losers, however European Union has structured to allow countries to benefit from trading with each other. As countries benefit individually, the goal is to enrich European Union as a whole by spreading the continent wealth. On the other hand, NAFTA has turns the countries working against each other. Here is an example, by NAFTA’s failure to enforece core labour laws in Maxico, Maxican wages have yet to rise, which create a competitive environment for the US since it creates too much competition for the US workers. This example shows although free trade agreement suppose to stimulate the economy through trade activities between the countries however in the case of NAFTA, lack of enforcing quality standard in Mexico has created problems instead of sucess for the USA.